As a Beaverton real estate agent, working with a lot of first time buyers, I go over the "basic" steps of buying a home. One of the topics of discussion is: How I will get compensated when acting as the buyers Beaverton real estate agent.

The article I read makes a few statements which are not accurate, and often quite misleading. As a Realtor in Beaverton, I do NOT get paid by the sellers.

To quote from the article: "Considering that a buyers agent usually doesn't cost a cent, it doesn't make much sense to go without one, Wolf and Bray say. A buyers agent makes a commission that the seller pays, though this sometimes is worked into the final sale price. If you buy a home without an agent, you could save on the purchase price, but it's not a certainty."

WRONG . . . WRONG . . . and WRONG!

Well, this IS correct: . . . a buyers agent doesn't cost the buyer. And it sure doesn't make much cents sense for a buyer to go without a Beaverton real estate agent.

The LISTING AGENT negotiates with the homeowner AKA Seller. The commission negotiated is between the listing brokerage and the Seller. This Realtor in Beaverton has NOTHING to do with that. It's CONTRACTUAL between Seller and the listing brokerage.

MYTH #2: ". . . though this is sometimes worked into the final sale price" -- WHAT?!??!?

Commissions are worked into the final price?!? They have got to be kidding me. The listing agent goes to the property to meet the owner AKA seller. The listing agent prepares comps and CMA's (Comparative Market Analysis) to price the property -- acccording to the CURRENT MARKET!! The list price is NOT based -- never was based, and never will be based on anything OTHER THAN: what the current market values are pricing out at. There is NO SUCH THING as having a commission "worked into the final sale price." A current market value is discussed with the owner AKA seller. Once a current market value is established, the listing agent, typically, prepares a NET SHEET and deducts the mortgage pay off amount, taxes that may be owed, commissions . . . and then seller will have a rough idea of what they will NET* from the sale.

As a Beaverton real estate agent specializing in EXCLUSIVE Buyer Agency . . . I actually do know how a buyers agent is paid. It's NOT from the seller.

As a Realtor in Beaverton . . . working exclusively as a buyers agent . . . I get a little miffed (ticked off, annoyed, P.O'd) when I read these types of articles which are CONTRARY to how a real estate agent in Beaverton is compensated.

Carla: This is a point that should definitely be straightened out for consumers. They are seemingly very confused about this. And don't get me started on my viewpoint of the media. Not only are they often very wrong .. have outrageous opinions ... but they are incessant. I made the comment in the not too distant past that I'm beginning to wish they shut down the TV like they used to at 1 AM in the morning. Show the flag. Play the National Anthem. Shut it down. At least they'd have fewer hours in which to misinform and opine.

OMG is right..the misconceptions in that article are unbelievable! Thanks for setting the record straight. Many buyers are out there listening to this crap and feel they can go it without a buyer's agent and save 3%. I must say there are some hungry agents that allow this to get a sale. Suggest this post!

Hey Donna -- even if that means I know a thing or two about "listing" property ;-) LOL

Hi Maria . . . I'm sure "how" a listing contract is established is similiar in most areas and "how" a market price is established is similiar as well! Thanks for the comments re your neck of the woods!!

Hey Navova -- thank you!! Re-blog any time.

Hi Gene -- thanks, and too funny!! Shut the TV down, and show the flag. LOL

Hey Nick . . . OMIGOSH, I was just thinking about you the other day!

Hi Brenda -- yes next post will be about the "co-op" fee split!!

Hey Gayle -- thanks for the edit, and comments!! ;-)

Hi Christine . . . thanks for the re-blog!! I'm glad I'm not the only one that said O.M.G. to the article.

Hey Dorie -- Many buyers think that they can get a "deal" with the listing agent. Listing agent is under contract with the sellers, and their fiduciary duties should be with them, not the buyer looking for a "deal." Thanks for the comment!!

Great article, Carla. It is frustrating, to say the least, when the media puts out the wrong information. I have seen buyers think that they are getting a better deal by working directly with the listing agent and they end up being out-negotiated and overpaying as a result.

Buyers seem to always think their agent's commission is built into the price, and that they, the buyers are paying for it in terms of higher price. Then these buyers turn around and ask their agent to rebate part of their commissions to the buyers.

Still can't understand why these same buyers would never ask other service providers to discount their price or to rebate part of their salaries to the buyers. Did YOU ever ask your accountant to rebate part of his fee to you? Heck you won't even ask your housekeeper or yardman. Yet, they think it's perfectly fine to ask their realtor?

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